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Oral argument on Detroit bankruptcy postponed in part

Last Friday, the Sixth Circuit postponed oral argument in some of the pending cases in the appeal from the bankruptcy judge’s decision that Detroit was entitled to creditor protection under Chapter 9 of the U.S. Bankruptcy Code and could try to alter the terms of workers’ pensions. The postponement was apparently granted to allow various pension groups to settle with the city. Oral argument will be going forward on July 30 in the cases involving the associations for current and retired police officers and firefighters. Interestingly, Judge Stranch’s dissent from the order postponing oral argument saying that she would rather postpone all of the appeals, and hear all of the issues at once.

That said, counsel for the fire fighter and police officer associations sent a letter to the Court earlier today stating that they would consent to postponing oral argument in their cases as well—so it is possible there will be no oral argument in the City of Detroit appeal on Wednesday.

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